Top Dividend Stocks To Consider In January 2025

As January 2025 unfolds, global markets are experiencing a wave of optimism, with U.S. stocks reaching record highs amid hopes for softer tariffs and enthusiasm surrounding artificial intelligence investments. This positive sentiment, coupled with political developments and economic indicators such as a rebound in manufacturing activity, sets the stage for investors to explore dividend stocks that offer potential stability and income in an evolving market landscape.

Top 10 Dividend Stocks

Name	Dividend Yield	Dividend Rating
Tsubakimoto Chain (TSE:6371)	4.24%	★★★★★★
Peoples Bancorp (NasdaqGS:PEBO)	4.84%	★★★★★★
CAC Holdings (TSE:4725)	4.57%	★★★★★★
Padma Oil (DSE:PADMAOIL)	7.43%	★★★★★★
GakkyushaLtd (TSE:9769)	4.36%	★★★★★★
Citizens & Northern (NasdaqCM:CZNC)	5.23%	★★★★★★
Nihon Parkerizing (TSE:4095)	3.94%	★★★★★★
FALCO HOLDINGS (TSE:4671)	6.51%	★★★★★★
E J Holdings (TSE:2153)	4.00%	★★★★★★
DoshishaLtd (TSE:7483)	3.79%	★★★★★★

Click here to see the full list of 1959 stocks from our Top Dividend Stocks screener.

Below we spotlight a couple of our favorites from our exclusive screener.

Morinaga Milk Industry (TSE:2264)

Simply Wall St Dividend Rating: ★★★★☆☆

Overview: Morinaga Milk Industry Co., Ltd., along with its subsidiaries, produces and sells a range of dairy products both in Japan and internationally, with a market cap of ¥239.01 billion.

Operations: Morinaga Milk Industry Co., Ltd. generates revenue primarily from its Foods segment, which accounts for ¥524.90 billion.

Dividend Yield: 3.1%

Morinaga Milk Industry's dividend payments are reliable and have grown steadily over the past decade, although they are not well covered by free cash flows. The payout ratio of 76.4% indicates dividends are currently covered by earnings, but profit margins have declined significantly from last year. Recent guidance revisions suggest lower expected profits, yet the company affirmed its dividend of ¥45 per share for Q2 2024. Additionally, Morinaga completed a significant share buyback program recently.

• Click here to discover the nuances of Morinaga Milk Industry with our detailed analytical dividend report.
• In light of our recent valuation report, it seems possible that Morinaga Milk Industry is trading behind its estimated value.

Japan Tobacco (TSE:2914)

Simply Wall St Dividend Rating: ★★★★☆☆

Overview: Japan Tobacco Inc. is a company that manufactures and sells tobacco products, pharmaceuticals, and processed foods both in Japan and internationally, with a market cap of ¥7.10 trillion.

Operations: Japan Tobacco Inc.'s revenue is primarily derived from its tobacco segment at ¥2.83 trillion, with additional contributions from processed foods at ¥155.88 billion and pharmaceuticals at ¥92.13 billion.

Dividend Yield: 4.9%

Japan Tobacco's dividend yield of 4.85% ranks among the top 25% in Japan, yet its dividend history is marked by volatility and unreliable growth over the past decade. Despite a reasonable payout ratio of 72.5%, dividends are not well covered by free cash flows, with a high cash payout ratio of 106.6%. Recent refinancing efforts aim to strengthen financial resilience without diluting shares, potentially supporting long-term dividend stability despite current challenges.

• Dive into the specifics of Japan Tobacco here with our thorough dividend report.
• According our valuation report, there's an indication that Japan Tobacco's share price might be on the cheaper side.

ANEST IWATA (TSE:6381)

Simply Wall St Dividend Rating: ★★★★☆☆

Overview: ANEST IWATA Corporation engages in the air energy and coating business across Japan, Europe, the Americas, China, and other international markets with a market cap of ¥53.26 billion.

Operations: ANEST IWATA Corporation generates revenue from several regions, with ¥25.21 billion from Japan, ¥13.03 billion from China, ¥10.08 billion from Europe, and ¥7.65 billion from the Americas.

Dividend Yield: 3.7%

ANEST IWATA's dividend yield of 3.69% is slightly below Japan's top payers, but its payout ratio of 43.5% indicates dividends are well covered by earnings and cash flows, with a cash payout ratio of 36.4%. Despite past volatility and an unstable track record, dividends have grown over the last decade. Recent share buybacks totaling ¥399.88 million could enhance shareholder value, while the interim dividend remains stable at JPY 22 per share from retained earnings.

• Delve into the full analysis dividend report here for a deeper understanding of ANEST IWATA.
• Our expertly prepared valuation report ANEST IWATA implies its share price may be lower than expected.

Turning Ideas Into Actions

• Discover the full array of 1959 Top Dividend Stocks right here.
• Have you diversified into these companies? Leverage the power of Simply Wall St's portfolio to keep a close eye on market movements affecting your investments.
• Maximize your investment potential with Simply Wall St, the comprehensive app that offers global market insights for free.

Seeking Other Investments?

• Explore high-performing small cap companies that haven't yet garnered significant analyst attention.
• Fuel your portfolio with companies showing strong growth potential, backed by optimistic outlooks both from analysts and management.
• Find companies with promising cash flow potential yet trading below their fair value.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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